(Credit: Canva Pro)Diligent is partnering with Clarity AI to launch an ESG Module for climate data analysis, which aims to offer businesses, organizations, and investors a higher level of transparency regarding ESG scores and the comparison of climate data against industry standards.
The ESG module, integrated with Insightia's shareholder engagement and governance data solutions, equips businesses with insights into their climate efforts and how they are perceived by stakeholders, investors, and customers. Diligent, a governance risk management SaaS company, joined forces with Clarity AI, a sustainability tech provider, to introduce the ESG module, which will be accessible on its Insightia One platform.
The incorporation of ESG metrics into investment and corporate strategies brings numerous benefits, including risk mitigation, opportunity identification, and stakeholder engagement. Diligent focuses on the importance of optimizing shareholder engagement and offers access to the same metrics and scores used by investors in their investment strategies. With ESG scores available for more than 15,000 organizations worldwide, the platform utilizes Clarity AI's proprietary methodology, which leverages data from public disclosures and over 30 external data partners.
The ESG scores are based on the integration of three key types of data: quantitative data, policies, and controversies.
Quantitative data includes measurable information such as Scope 1, 2, and 3 greenhouse gas emissions. Policies encompass qualitative data related to company climate frameworks and targets. Finally, controversies are measured against 39 business-relevant categories and are collected from over 100,000 news articles daily. This integration provides organizations with a holistic view of their ESG performance and enables them to make informed decisions.
Transparent, accurate, and reliable data is vital for businesses to future-proof themselves in an ever-evolving landscape. Carmen Boulet, strategy director at Clarity AI, emphasizes the significance of having access to such data for incorporating ESG metrics into investment and corporate strategies. Clarity AI's ESG scores, now available to Diligent customers through the partnership, offer a foundation for businesses to navigate ESG-related challenges.
Diligent's Managing Director of ESG and Data Intelligence Amanda Carty highlighted the increasing value of comparing climate posture to industry peers. In 2022, a significant number of environmental and social proposals received majority support at S&P 500 companies, signifying the growing importance of ESG practices.
Diligent's ESG module provides organizations with information on how their climate efforts measure against industry averages, enabling them to identify potential risks and opportunities associated with ESG.
Editor’s note: Don’t miss the virtual Environment+Energy Leader Solutions Summit ’23 on July 18-19. Learn tangible, innovative solutions to help with sustainable transitions across industries. Speakers from companies and organizations including Schneider Electric, Cority, Jump Associates, Mycocycle, Plainsight, LRQA, the Alliance to Save Energy, and many more will share tactics and lessons that can help you solve your energy management, sustainability, and ESG challenges. Learn more about the #EESummit23, and then register today!
